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Buy Ambika Cotton Mills – Call closed – 148% returns as on 09-04-10

Posted on: May 24th, 2009 at 7:45 pm

CALL CLOSED (LONG TERM INVESTORS – HOLD IT) Buy Ambika Cotton mills. Current market price: 74.90. Long term target: 149.80. Book value: 189.30. P/E ratio: 3.57

The Company’s principal activity is to manufacture and market cotton yarn. Its cotton yarns are used for manufacturing of shirts and T Shirts. Its plant is located in Kanniyapuram, Dindigul district of Tamil Nadu. The Company operates only in India.

The company has been working on value added products which yield better margins. To reduce power costs, Ambika has planned to increase the present installed capacity for wind energy from 13.8MW to 17.8MW by installing five windmills of 800kW each at an estimated cost of Rs21.48 crore.

Dividend
Year      Month Dividend (%)
2008     Jun             20
2007     Jun             25
2006     Jun             20
2005     Jun             20
2004     Jun             16
2003     Jun             16
2002     Jun             12
2001     Jun             12
2000     Jun             12
1999     Jul              18
1998     Jul              18
1997     Jul              18

YEAR EVENTS 1988 – The Company was originally incorporated as Ambika Cotton Mills Private Ltd as a Private Limited Company on 6th October , in the State of Tamil Nadu, and subsequently converted into a Public Limited Company on 5th September, 1994.

– The Company was promoted by Shri P K Ganeshwar, Shri M Rathanasamy and Shri P V Chandran, for setting up a cotton spinning mill. The mill, located in Dindigul, Tamil Nadu, commenced operations in January 1990. The project, with an initial capacity of 6048 spindles was part-financed by a term loan from State Bank of India. The Company carried out an expansion scheme to add certain back-process machinery in February 1991, which was also funded by the State Bank of India.

1992 – The company began implementation of an expansion project to double its spindlage to 12096 spindles by the addition of 6048 spindles. This project which was financed by means of a medium term loan from State Bank of India and the State Bank of Mysore on a consortium and through a Deferred Payment Guarantee limit from IDBI. The project was successfully completed in March 1993.

1994 – The Company added Comber machines to its production line and humidification system. This was funded by SIPCOT through a term loan of Rs. 90.86 lacs.

– The Company currently manufactures combed and carded cotton yarn of counts ranging from 30’s to 40’s. These are used by hosiery manufacturers to convert the same into fabric or garments.

2000 – The Company has chalked out a Rs 14-crore expansion-cum-modenrisation programe.

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98 Responses

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Comment pages: 1234567Show all

  1. ramsingh Says:
    June 2nd, 2009
    Posted at: 7:40 pm

    Hai CB!
    Please suggest Ifci target and after 55 level how much we expected.
    And also Glory poly film - what is the short term and mid term target for these scripts.


  2. ramsingh Says:
    June 2nd, 2009
    Posted at: 7:42 pm

    Hai CB!
    I think u have much tired because u have face lot of questions.I have not imagine how u are sitting without refresh.


  3. CB Says:
    June 2nd, 2009
    Posted at: 8:53 pm

    Hi ramsingh, not sure about IFCI above 55.. Glory can add 10-15% in short term.. I dont need to refrest the website.. I can see comments uner the admin logon :)


  4. Srikanth Says:
    June 3rd, 2009
    Posted at: 12:34 pm

    Dear CB,

    first time entering this blog...ur comments are really usefull and thanks for your suggestions....

    pls suggest any stocks for short term gain....

    Regards,

    Srikanth.R


  5. CB Says:
    June 3rd, 2009
    Posted at: 12:39 pm

    Hi Srikanth, most welcome.. buy Indo Tech transformers for a target of 380 in short term


  6. Ranga Says:
    June 3rd, 2009
    Posted at: 10:01 pm

    guru, why ambika is decreasing daily ?


  7. Ranga Says:
    June 3rd, 2009
    Posted at: 10:12 pm

    also I got good signals on grasim, IDFC, what u say for very short term.


  8. CB Says:
    June 3rd, 2009
    Posted at: 11:07 pm

    Hi Ranga, not sure. but hold it..it will do well.. yes..Grasim looks good


  9. rajasehar Says:
    June 4th, 2009
    Posted at: 10:40 am

    hi.mr.cb...i missed to buy ambikacott..today it is near,86 Rs....can i buy today(4.6.09dt)..sir plz advice me..coz already wentup to 104


  10. CB Says:
    June 4th, 2009
    Posted at: 10:41 am

    Hi rajasehar, yes.. buy and hold for couple of months..it can see 120+


  11. rajasehar Says:
    June 4th, 2009
    Posted at: 11:38 am

    ok..ji..thanks..but ..no s/l?


  12. Manish Malhotra Says:
    June 5th, 2009
    Posted at: 9:23 pm

    Hi CB,
    I have Techm@681,Tatasteel@488,Sintex ind@245,Sesagoa@170, Riil@1255.Plz tell me about these stocks and also NIFTY


  13. CB Says:
    June 5th, 2009
    Posted at: 11:19 pm

    Hi rajasehar, no..incase it corrects, avg it

    Hi Manish Malhotra, they are a hold. keep them for a months time..will do well.. Nifty has resistance at 4620 and support at 4580 and 4450..


  14. Kalpesh R shah Says:
    June 11th, 2009
    Posted at: 1:48 pm

    good service and nice guidance. i like to invest for short term. so can i buy Ambika this level. suggest me. i have ennore cock also. so, its nice company with fundamental ?


  15. RK.1L Says:
    June 18th, 2009
    Posted at: 6:48 pm

    shall i buy/add now it is around 70-75 , thanks cb


  16. hitesh Says:
    June 24th, 2009
    Posted at: 4:45 am

    what is the out look of market before budget?

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